The Central Bank of Nigeria (CBN) has reported that private sector credit rose to N74.63 trillion in November 2025.
The data shows a marginal increase from N74.41 trillion recorded in October and signals an early rebound in lending activity following the CBN’s September policy rate cut.
The data indicates that while tight monetary conditions constrained lending for most of the year, easing policy signals are beginning to stabilise credit flows to businesses and households.
In its Q4 2025 Credit Conditions Survey, the CBN also stated that lenders recorded higher default rates on loans to households and businesses in the fourth quarter (Q4) 2025.
Despite the high default rate, the report showed an improvement in credit availability across key lending segments in the review period.
According to the CBN, while overall lending conditions showed mixed outcomes, lenders are cautiously expanding access to credit despite rising repayment risks.
Credit trends during the quarter reveal both opportunities and challenges for borrowers and lenders alike, highlighting the complexity of Nigeria’s financial landscape.
Overall lending conditions reflected varied outcomes in Q4 2025, with households facing higher borrowing costs and corporate borrowers experiencing mixed pricing trends.
Spreads on secured and unsecured household loans widened to -10.8 and -2.0 index points relative to the Monetary Policy Rate (MPR), indicating higher borrowing costs for households.
For corporate loans, spreads narrowed for small businesses (14.8), large private non-financial corporations (PNFCs) (2.9), and other financial corporations (OFCs) (4.3), while medium-sized PNFCs saw a widening spread of -4.8 index points, reflecting tighter pricing conditions.
Lenders reported increases in loan defaults across secured, unsecured, and corporate lending categories, signalling persistent repayment challenges.
The data showed that although credit supply improved in some sectors, heightened default rates continue to pose risks to overall loan performance.
Previous CBN reports highlighted that households often face constrained borrowing due to elevated interest rates and limited disposable income.
Corporate lending has generally benefited from targeted policy measures and liquidity support, particularly for large and small PNFCs.
